Recovering Natural Gas Liquids (NGLs) from field gas used to fuel natural gas compressor engines is an essential aspect of optimizing the efficiency and profitability of compressor stations and gas gathering systems. Operators of gas gathering and transportation systems, including both midstream and large upstream companies, are faced with the sometimes contradictory goals of increasing profitability, efficiency, and environmental performance.
Fortunately, recent technological innovations have made it possible for operators to align these goals and achieve higher levels of operational efficiency and profitability. Most emissions reduction solutions increase costs, while a select few generate higher profits. In this article, we focus on the value of increased NGL recovery made possible by Coldstream Energy’s MaCH4™ NGL Recovery Solution for optimizing compressor station performance, that delivers both higher profits and lower emissions.
The Importance of NGL Recovery
NGLs—such as ethane, propane, butane, isobutane, and natural gasoline—typically command higher prices when sold separately rather than being left in the natural gas stream and sent directly to the sales line or used as fuel gas. Recovering NGLs from fuel gas at compressor stations not only generates additional revenue but also creates lean fuel gas that enhances the overall performance and longevity of the compressor engines, thereby helping to optimize compressor station performance.
Enhanced Revenue and Profitability
One of the primary benefits of recovering NGLs using the MaCH4 solution from Coldstream Energy is the substantial increase in revenue and profitability.
The chart below illustrates the NGL Composite Price for liquids sold at the Mont Belvieu and natural gas (Henry Hub) by month from January 2009 through November 2024. On average, NGLs sold for $8.44 per MMBTU as compared to $3.38 per MMBTU for pipeline quality natural gas, representing an average premium of 149%.
Although the prices for any individual NGL component (e.g., butane, propane, ethane, etc.) fluctuate over time due to the market dynamics, NGLs have fetched a consistently higher price than pipeline quality gas (methane) over the long term.
Source: U.S. Energy Information Agency Prices for hydrocarbon gas liquids and natural gas prices.
By capturing and selling these heavy hydrocarbons, operators can unlock new revenue streams that would otherwise be lost from burning the NGLs as fuel gas. The sale of NGLs can significantly boost the financial performance of gas gathering systems, providing a steady income that can be reinvested into further improving the infrastructure and optimize compressor station performance.
For example, propane and butane are widely used in the petrochemical industry, for residential heating, and as transportation fuels. By recovering and marketing these NGLs, operators can tap into these lucrative markets. Additionally, natural gasoline is a valuable product used as a blending component in motor gasoline, further enhancing the economic potential of NGL recovery.
Improved Compressor Engine Performance
Another significant benefit of the MaCH4 solution is its ability to improve compressor engine performance by delivering lean fuel gas instead of “wet” gas laden with NGLs. When NGLs are left in the fuel gas and used as fuel, they increase its potential for detonations, as measured by a lower Methane Number for reciprocating engines (or Wobbe Index in the case of natural gas fired turbines). Consequently, fuel gas containing NGLs can derate engine performance and efficiency, reducing overall throughput and wear and tear on moving parts.
Lean fuel gas, which has a lower hydrocarbon content, burns more cleanly and efficiently, resulting in better engine performance and lower emissions. This not only extends the lifespan of the compressor engines but also reduces operational costs by minimizing the need for frequent maintenance and repairs. The MaCH4 solution ensures that the fuel gas used by the compressors is of the highest quality, enhancing the overall reliability and efficiency of the gas gathering system, ultimately helping to optimize compressor station performance.
LEARN MORE: White Paper – Best Practices for Optimizing Compressor Station Performance
Environmental Benefits
Recovering NGLs from fuel gas also has significant environmental benefits. By capturing and utilizing these valuable hydrocarbons, operators can reduce emissions of Volatile Organic Compounds (VOC) to minimize the environmental impact of their operations. Lean fuel gas combustion produces fewer pollutants, contributing to cleaner air and a healthier environment.
Furthermore, the sale of NGLs as separate products can reduce the reliance on other, more environmentally damaging energy sources. For instance, propane and butane are cleaner-burning alternatives to coal and oil, and their increased use can help to lower overall carbon emissions.
The MaCH4 NGL Recovery Solution from Coldstream Energy
Coldstream Energy’s MaCH4 solution is a state-of-the-art technology designed to maximize the efficiency of NGL recovery at compressor stations. The system employs advanced separation techniques to extract NGLs from the fuel gas, ensuring that only the leanest and cleanest gas is used to power the compressors, thereby helping to optimize compressor station performance.
One of the key features of the MaCH4 solution is its high recovery efficiency. The system is capable of capturing a significant percentage of the NGLs present in the fuel gas, maximizing the potential revenue from their sale. This high level of efficiency is achieved through a combination of cutting-edge technologies and innovative engineering, making the MaCH4 solution one of the most effective NGL recovery systems on the market.
The MaCH4 proved its value proposition in a rigorous pilot project with Iron Horse Midstream that will be converted into a permanent installation in Q1 2025.
Over a 12-month period, the MaCH4 solution recovered over 99% of the C4+ and over 85% of the C3 was returned to the suction header for monetization downstream. Based on a field gas BTU value approximately 1,305 BTU/scf at the Pilot site, the total annual NGL value recovered would be greater than $1.2MM for a 7,500 HP Compressor Station.
READ MORE: MaCH4 White Paper Case Study (PDF Download)
In addition to its impressive recovery efficiency, the MaCH4 solution is also designed for ease of integration and operation. The unit can be seamlessly integrated into existing compressor stations, with minimal disruption to ongoing operations. Its user-friendly interface and robust design ensure reliable performance and ease of maintenance, further enhancing its appeal to operators and helping to optimize compressor station performance.
MaCH4 Benefits
- Maximize NGL Value. Cryogenic level NGL recoveries capturing 60% of C2 and 95% C3+, keeping NGL’s in gaseous form for downstream monetization.
- Minimize Emissions. Reducing up to 75% VOC emissions, and 8% CO2 emissions upstream of engine catalyst. Ability to add more compression to a facility without triggering major source emissions thresholds and costly Title V operating permits.
- Maximize Throughput. Residue quality fuel gas minimizes engine derating (up to 9%) to maximize gathering station throughput and fee-based revenue.
READ MORE: MaCH4 Brochure (PDF)
Conclusion
Recovering Natural Gas Liquids (NGLs) from fuel gas used at compressor stations is a critical aspect of optimizing the efficiency and profitability of gas gathering systems. The MaCH4 solution from Coldstream Energy offers exceptional NGL recovery efficiency, resulting in increased revenue and profitability from capturing and selling heavy hydrocarbons. Additionally, the solution improves compressor engine performance by burning lean fuel gas, leading to reduced maintenance costs and lower emissions, ultimately helping to optimize compressor station performance.
As the industry works to meet the growing demand for reliable and affordable energy from natural gas, innovative solutions like the MaCH4 from Coldstream Energy will play an increasingly important role in maximizing the value of natural gas resources and infrastructure. By embracing these advanced technologies, operators can enhance the financial performance of their gas gathering systems while contributing to a cleaner and more sustainable energy future.
Contacts
Coldstream Energy, LLC
Mathias Schlecht
President and CEO
mschlecht@coldstreamenergy.com
